Your source for CAWG and industry news
August 9, 2018

November 7-8
CAWG Board of Directors meeting and CAWG PAC event, Santa Ynez

Mission: We provide creative, integrated solutions for our beverage and ag industry partners with quality packaging products and supply chain services.
CAWG's preferred partner 
for insurance products 
for more than 20 years. 

Group Workers' Comp
  Wine Industry Package 
Federal Crop Insurance 
Employee Benefits
& More...  
888-640-0593 or 
Paid Sponsorship
  CA LIC No. 0F89850

 Providing the very best California crop insurance services.

Call 916-379-8995

IRS Proposes 20 Percent Tax Break for Pass-through Businesses
The IRS yesterday  issued proposed regulations  for a new provision allowing many owners of sole proprietorships, partnerships, trusts and S corporations to deduct 20 percent of their qualified business income. The new deduction -- called the Section 199A deduction or the deduction for qualified business income -- was created by the 2017 Tax Cuts and Jobs Act (H.R. 1). The deduction is available for tax years beginning after Dec. 31, 2017. Eligible taxpayers can claim it on their 2018 federal income tax return they file in 2019.

Employee or Independent Contractor? New Standard Causing Problems
CAWG Director of Government Relations Michael Miiller wrote in the July issue of The Crush about the California Supreme Court's April ruling on independent contractors -  Dynamex Operations West, Inc. v. Superior Court . This week, news outlets are highlighting the impact of that ruling (links below). 

CAWG is working with dozens of industry organizations in pursuing a two-year delay in the application of the ruling to allow a deliberative process to address this in law. 

>A 30-minute segment on a Southern California Public Radio station examined the effects of the court decision. Interview with CalChamber's Jennifer Barrera and Duane Morris counsel Michael Bernick. 
>CalChamber article: State Legislature needs to set standard on independent contractor test (Aug. 7)
>Sacramento Bee article: Who is an employee? New standard for 2 million workers spurs clash at California Capitol (Aug. 6)

Government Relations Report
On Monday, Montebello Mayor and housing advocate Vanessa Delgado, a Democrat, will be sworn in to fill a vacancy left by former state Sen. Tony Mendoza, who resigned from office in February amid allegations of misconduct. Delagdo's Senate term will be incredibly brief. She will serve only from Aug. 9 to Nov. 30. 
Because the two-year legislative session ends in August, she likely will have just three weeks of floor voting. In those three weeks, Delgado will have to study quickly as the California Legislature takes on critical issues such as liability for wildfires, safe drinking water, sexual harassment, net neutrality and much more. While her term may be historically short, her vote in the Senate could be critical.
Delgado's short tenure is because in June, voters chose different candidates in the special primary election and the normally scheduled primary election, which were held concurrently. While Delgado succeeded in the special primary election, Democrat Bob Archuleta advanced in the normally scheduled primary election.  
The candidate who wins the November general election in this heavily-Democrat district, which will likely be Archuleta, will begin a four-year Senate term on Dec. 3.

-- Michael Miiller / / 916-379-8995  

Wildfires: Trump Approves California Disaster Declaration
President Trump on Aug. 5 approved a  Presidential Major Disaster Declaration -- requested by Gov. Brown -- to bolster response and recovery efforts in areas affected by wildfires. The declaration helps people through various assistance and aid programs; provides public assistance to help state, tribal and local governments with ongoing emergency response and recovery costs; and hazard mitigation, which helps state and local governments reduce the risks and impacts of future disasters.
Twenty-five California Congressional representatives signed an Aug. 7 letter to the president in support of the request for a Major Disaster Declaration as a result of the Northern California wildfires.  
>FEMA FACT SHEET: List of federal disaster aid programs for California as part of disaster declaration.

Destructive Nutria: If You See One, Report it ASAP
Photo:  Joyce Gross, UC Berkeley
Because the invasive swamp rodent known as nutria can  damage crops, weaken levees and other water infrastructure, and wreak havoc on wetlands, the California Department of Fish and Wildlife (CDFW) is asking for help spotting them. Landowner cooperation is critical to the success of nutria eradication efforts.
Suspected observations or potential signs of nutria in California should be photographed and immediately reported to CDFW via an online sighting report, by email to, or by calling (866) 440-9530. If a nutria is captured, do not release it, immediately contact your local CDFW office or county ag commissioner.

DPR Reminds Growers to Notify Schools, Day Care Centers if Using Pesticides
With back-to-school month, DPR is issuing a notification reminder. The agency says nearly 90 percent of California farmers have sent pesticide notifications to schools near them. Information for growers and applicators can be found on  DPR's website  or by contacting your county agricultural commissioner.

CAWG Supports Event Honoring Women in Wine

This week CAWG joined Wine Institute and legislative leaders in celebrating Sacramento-area women in wine at a reception hosted by Fem Dems of Sacramento. This is a political organization that promotes volunteerism, community outreach, fundraising and activism to build leadership skills, engage community leaders and discuss current events impacting gender equality. 

Honorees included Rina Venturini DiMare, president of the Clarksburg Wine Growers & Vintners Association and former Capitol staffer for then-Assemblywoman Valerie Brown (D-Napa).


Napa Valley growers report that veraison has been underway for several weeks.
Western Farm Press, Aug. 8

In-depth article about the farmworker shortage, housing hurdles and growers using the H-2A program.
New Times, Aug. 9  

Focus on Monterey County farmers. Quotes from Monterey County Vintners & Growers Association and Wine Institute.
Monterey County Weekly, Aug. 8
"If this goes on for a prolonged period of time we will lose significant markets that have been built but one relationship at a time over decades," said CDFA Secretary Karen Ross.
FOX News, Aug. 6
An international team of authors led by the UC Davis found that natural habitat around farms varies widely across the world and is not always an effective pest control tool. Their analysis was recently published in the Proceedings of the National Academy of Sciences.
UC Davis, July 30


The fires are located mostly in rugged, rural terrain several miles from Lake County's major winegrowing areas. Preliminary reports of vineyard damage appear to be minimal, limited to a few smaller parcels. Growers in the impacted area are proactively monitoring the status of their vines and will test fruit in the coming days.
Press release, Aug. 2

Four Ways to Foster Cooperation Over Groundwater
From the Public Policy Institute of California In 2017, some 250 local groundwater sustainability agencies (GSAs) were formed - as required by the Sustainable Groundwater Management Act. Those GSAs now face the difficult task of developing and implementing plans to bring their groundwater basins into balance over the next 20 years.  A recent event explored groundwater governance and laid out four ways that locals will need to cooperate to manage groundwater for long-term sustainability: 1) coordination within GSA boundaries, 2) coordination within basins, 3) coordination across basins and 4) coordination with counties. >READ MORE

Articles and Resources
The latest water proposal from the California State Water Resources Control Board is drawing criticism from several sources, including the U.S. Department of the Interior.
Ag Net West, Aug. 3

Vine Loss Calculators Available Online

UC Cooperative Extension specialist Matthew Fidelibus recently tweeted that one of the most common requests he receives is for information on how to determine the financial loss of vines due to various causes. UC Davis Agricultural and Resource Economics has free vine loss calculators online. These workbooks calculate the value of a single vine lost to any cause, taking into account the loss of future income. There are two tabs within the worksheet - with replanting and without replanting

Oakville Station Seminar Series

WHEN: Friday, Aug. 10 / 1:30 p.m.
WHERE: UCD Oakville Research Station, 1380 Oakville Grade Road, Oakville
--Single high wire no touch vineyard tour 
--Sink relationships in Napa Co. cabernet sauvignon
--Phylloxera adaptation and selection to new rootstocks and hosts
--Social (bring a bottle of wine to share) and Oakville BBQ to follow at 4 p.m.

Irrigation and Vine Water Use Tailgate Meeting

WHEN: Friday, Aug. 10 / 7:30 a.m.
WHERE:  Safari  Vineyard, 4271 Safari  Trail Road, Pilot Hill
HOSTED BY: UC Davis irrigation specialist Daniele Zaccaria and Central Sierra farm advisor Lynn Wunderlich.